- U.S. Senate Banking Committee advances GENIUS Act for stablecoin regulation.
- Bipartisan support pushes the GENIUS Act closer to becoming law, but hurdles remain.
- Nebraska pushes for state control over stablecoin regulations amid federal efforts.
The Senate Banking Committee just gave the green light to a bipartisan bill aimed at regulating stablecoins. The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), approved by an 18-6 vote, seeks to create a federal system for stablecoin regulation, potentially bringing much-needed clarity to these digital assets.
Senator Bill Hagerty, who introduced the bill, sees it as a way to provide clear regulations for stablecoins in the U.S. While the bill passed with support from both Republicans and Democrats, it still faces hurdles before becoming law. It must clear the full Senate and House of Representatives before reaching President Donald Trump’s desk for final approval.
The GENIUS Act is designed to protect consumers while promoting financial innovation. Senator Hagerty stated that the bill will help the U.S. remain a leader in financial technology while safeguarding consumers from possible risks associated with digital currencies.
Related: Senator Hagerty’s GENIUS Act Aims to Pass Stablecoin Bill in 100 Days
During the committee’s review, several Democrats expressed concerns over the bill’s provisions but agreed on establishing a stable regulatory environment for the growing crypto market.
Bipartisan Support, But With Reservations
While the bill garnered bipartisan backing, it also sparked intense debate. Senators Kirsten Gillibrand and Senator Cynthia Lummis co-sponsored the bill, showing support from both sides. However, some Democrats proposed amendments to impose stricter regulations, which were voted down by the Republican majority.
Related: Nebraska fights for state control of stablecoin rules as Bitcoin ATM fraud sparks national concern
Senator Elizabeth Warren, the committee’s ranking Democrat, strongly objected to several aspects of the bill. She argued that pushing the bill forward, in light of news concerning President Trump’s possible involvement in the crypto space, raised risks to national security. Despite her concerns, the committee moved forward with the bill’s approval.
Nebraska’s Stand: State vs. Federal Control
This federal push comes as individual states are also taking action on stablecoin regulation. Nebraska, for example, has shown a strong commitment to regulating digital assets, particularly stablecoins.
The state recently passed the Nebraska Financial Innovation Act, which created a regulatory framework for digital asset custody institutions. Nebraska lawmakers have made it clear they want to keep control over stablecoin regulation while ensuring that any federal laws align with their state’s existing rules.
Rep. Flood, a key supporter of the Nebraska Financial Innovation Act, stressed that any federal stablecoin legislation should respect Nebraska’s regulatory structure, allowing the state to maintain its leadership role in digital asset regulation while meeting federal standards.
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